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Tuesday, June 14, 2011

Inclusion of non-operating income and non-exclusion of the non-operating ex

IT : Inclusion of non-operating income and non-exclusion of the non-operating expenses would definitely affect net margin of operating profits of comparable company

Income-tax : The comparison has to be between likes and on the equitable grounds of indicators of comparison and therefore, only income derived from operation of relevant business activity are to be considered for making adjustments in transfer pricing [Section 92C of the Income-tax Act, 1961 - Transfer Pricing] - [2011] 10 taxmann.com 161 (Bang. - ITAT)